SMBR Reaches 372% Net Profit Increase in 2021

PALEMBANG – PT Semen Baturaja (Persero) Tbk (SMBR) again scored a positive performance in 2021 where SMBR was recorded to be able to penetrate an increase in net profit of 372% compared to the previous year.

In the midst of the oversupply of the national cement industry and the ongoing Covid-19 pandemic as well as rising pressures for coal commodities, the Company is working hard by carrying out various strategic initiatives to provide its best performance in 2021.

“The improvement in the national economy in 2021, which is indicated by Indonesia’s economic growth of 3.69% and the growth of the construction sector of 2.81%, has prompted an increase in cement demand in Sumatra, which is the SMBR market area, by 2.5% throughout 2021,” he said. M. Jamil Director of Finance and Risk Management SMBR.

SMBR posted an increase in sales volume of 1%, and revenue of Rp. 1.75 trillion, an increase of 2% from revenue in 2020.

The company also managed to reduce the cost per ton in 2021 by 4% compared to the previous year. The success of the cost leadership program implemented by the Company in 2021 is one of the main keys to the Company’s success in increasing EBITDA by 7% with a value of Rp 446 billion from the previous year.

“The cost leadership strategy has a positive impact on the Company. We have succeeded in carrying out this cost leadership by making efficiency and optimizing factories to produce products at an efficient cost.” he added.

SMBR’s financial burden decreased to Rp 180.4 billion. This caused the company’s net profit to soar and record a net profit of IDR 51.82 billion, reaching 372% (yoy) compared to 2020.{}